Private ownership of resources by individuals is a feature of which economic system?

• A. Wants
• B. Capitalism
• C. Needs
• D. Equilibrium

Answer: (B)

Private ownership of resources by individuals is a hallmark of capitalism, where people and private firms have property rights over land, factories, and other assets and can use, sell, or invest them as they choose. This setup fuels investment and innovation because owners can benefit from the returns or bear the losses from their decisions. Markets then allocate resources through prices that arise from supply and demand, guiding what is produced and at what cost. The emphasis on private property and voluntary exchange is what sets capitalism apart from systems where resources are owned or controlled collectively, or by the state. The other terms describe desires or a state of balance in markets, not a description of who owns resources, so they don’t fit as well.